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Agents on deals forWilliams Communications and Level 3 Communications reportedly are bumping up pricing and offering juicy up-front fees, respectively, as they try to woo buysiders already holding their share of telecom paper. While market players note that Williams and Level 3 are two of the best telecom names to be had, an oversupply of sector paper and an increasing interest in health care and food industries is sapping interest. "These are two top names with top-notch credit and they're not blowing out," said one buysider, contrasting the recent telecom credits with other big deals like Michaels Foods, Greif Brothers, Caremark, and Winn-Dixie. These deals saw institutional tranches sell out quickly as buysiders jumped to put their money to work after a slow start to the year for new issuance.

Only in Bondland would NERDS mean Not Ever Really Dead Sectors. The revenge of the NERDS, in Credit Suisse First Boston research language, is the fact old economy businesses are providing more upside to investors than new economy bonds. "We always try to do something original with our research," says CSFB high-grade credit strategy head David Goldman, adding that he just got off the phone ordering propeller beanies with the CSFB logo for an upcoming conference. "Just think of them as high-tech yamulkes," he quips.

First Union and FleetBoston last week launched syndication of a $400 million revolver HRPT Properties Trust, replacing a larger deal the pair led for the company.Wells Fargo signed on as syndication agent, Commerzbank as documentation agent, and Bank of New York as senior managing agent, according to officials at First Union. John Popeo, cfo, said the company will use the $400 million facility to replace an existing $500 million, four-year credit the company also has through Fleet and First Union that matures in 2002. Popeo declined to comment on why the company reduced the facility size. He said the company chose the banks based on the strong previous relationship they have with the company.

The European Union has given a carve out from a new withholding tax for issuers that add to benchmark issues until March 1, 2002, without being subject to the tax. The granfathering arrangement has quelled strong concerns over the fungibility of new tranches, or re-openings tied to pre-March 1, 2001 issues, but the announcement actually came after the tax had taken effect. "It isn't like they waited for the 11th hour, it was more like they corrected it sometime after midnight," says Crispin Southgate, strategist at Merrill Lynch in London.

First Union at a bank meeting last Thursday launched syndication of a $180 million senior secured credit on behalf of Quincy, Mass.-based Quincy Newspapers.Firstar Bank and Key Corporate Capital have committed to the facility as syndication and documentation agents, respectively. First Union officials said the facility comprises an $80 million revolver and a $100 million term loan. Pricing is expected at LIBOR plus 21Ž 2% and leverage is under 4.5x. Ralph Oakley, v.p. of Quincy, confirmed the structure of the deal and the arrangers, but would not elaborate further on any details surrounding the facility.

Mark Mahoney this week joins Wachovia Corp. as head of capital markets after leaving his post as president of First Union Institutional Debt Markets. He will report to John McLean, senior executive v.p. in charge of corporates services. He declined to discuss specifics regarding any expansion plans for the group. Currently, there are 450 people working in capital markets at the bank, but Mahoney would not say whether or not he would be looking to hire more. In his new position, Mahoney will be overseeing loan syndication and trading, in addition to debt and equity businesses. He will be replacing Doug Williams and J. Peter Peyton, who were co-heads of the group and are moving into risk management and merchant banking,

Some Japanese banks have been holding auctions to rid themselves of bad credits before the fourth quarter ends on March 31, according to market players. Regulatory pressure is one reason given for the sales, but the prime driver seems to be merger plans among banks. Specific names of banks involved could not be determined by press time, but some of the credits being auctioned off include Owens Corning and Finova Group. The merging banks include Industrial Bank of Japan, Fuji Bank, and Dai-Ichi Kangyo Bank, which are forming Mizuho. Officials at IBJ and DKB declined to comment. Fuji officials did not return calls.

Moody's Investors Service has tagged a Ba3 rating on the $500 million credit facility for Caremark Rx. The rating agency also upgraded the company's existing credit ratings from B1 to Ba3, pointing to the company's improved cash flow position. In addition, Moody's placed the B2 senior unsecured debt rating and the B2 issuer rating under review for possible upgrade.

Moody's Investors Service lowered the rating to B3 from B2 on Aavid Thermal Technologies, Inc.'s $75 million guaranteed senior secured bank facility because of disappointing revenues over the last fiscal year. Net sales of $294 million from its business lines were modestly lower than the pro forma estimate for Aavid after adjusting its acquisition of the Thermalloy Group. The company's resulting debt to cash flow ratio of just over five times, based on $41 million adjusted earnings before interest, taxation, depreciation, and amortization, is in violation of the respective bank covenant.

Merrill Lynch and First Union filled out other agents roles this week for the $800 million credit it launched last month for Jacksonville, Fla.-based Winn-Dixie Stores, Inc. Harris Bank and FleetBoston have signed on as documentation agents and SunTrust and CoBank as managing agents.

Ferdie Masucci, a managing director and 16-year veteran of Morgan Stanley Dean Witter's New York corporate bond trading efforts, has left the firm and joined HSBC in New York to head up capital markets aspects of its corporate bond effort. An HSBC spokeswoman says Masucci, who started Monday last week, helms the U.S. corporate bond trading, research, sales and syndicate operations, and will reports to fixed-income head John Burrus. Masucci did not return repeated calls for comment.

The bank debt of Owens-Illinois traded last week in the 92-93 range and some traders expect it to climb higher as a restructured bank deal is backed by assets, improving banks' positions. The company is wrestling off asbestos litigation worries, as is Crown Cork & Seal, which saw bids for its bank debt rise with a new add-on the company recently inked.